ROA VAT SOLUTION
A QUICK, SLICK AND SIMPLE APPROACH TO YOUR RACING VAT
When you own a racehorse, paying VAT along the way is unavoidable. But reclaiming yours is now easier than ever with the ROA VAT Solution.
Whether you are an ROA member or not, allow our team to deal with HMRC on your behalf and take the trouble out of reclaiming VAT – giving you more time to focus on the sport you love.¯
Our team are on hand to advise and assist in all VAT matters through every stage of your owner journey.
You put so much into the sport. Start getting more back.
What is the “Scheme”?
The Racehorse Owners VAT Scheme was introduced on 16th March 1993 and enables Racehorse Owners to register and recover their racing-related VAT with HMRC. The average saving per owner per year in VAT is over £4,700 based on the average racing-related expenses and excluding any VAT incurred on the purchase cost.
Why the ROA VAT Solution?
The ROA has launched a new VAT Solution for Owners driven by a dedicated team with over 20 years’ experience of The Racehorse Owners VAT scheme.
Alongside the teams' experience and knowledge, the service is powered through the market-leading XERO accounting software which is fully compliant with HMRC’s Making Tax Digital requirements introduced in April 2019.
Who can subscribe?
Racehorse Owners registered with the British Horseracing Authority (BHA) are eligible to apply for a VAT registration with HMRC under the Racehorse Owners VAT Scheme. In addition, a sponsorship agreement covering the racehorses must be registered with the BHA, and the horse will need to be recorded with Trainer at the time the BHA’s D1 or D2 form is authorised. For information on how to take advantage of our Tote owner sponsorship scheme as an ROA Member click here. Once the ROA has been authorised to act as your VAT agent with HMRC we will take care of your VAT affairs, from completing the VAT registration on your behalf through to submitting your quarterly VAT returns.
Alternatively, owners who are already registered for UK VAT under the Racehorse Owners VAT Scheme can simply authorise the ROA as their VAT agent and the ROA will take over their VAT affairs seamlessly. This service is available for both UK and overseas clients, whether they are ROA Members or non-ROA members (see fee table below).
How will it work?
Whether you are registering for UK VAT under the Racehorse Owners Scheme or would like to instruct the ROA as your VAT agent with HMRC for an existing VAT registration, simply complete the ROA VAT Solution Agent Flyer and submit that to [email protected]. The VAT Solution team then take care of the rest, by working on your behalf with HMRC to register for VAT and on through to the quarterly VAT submissions. Each quarter we will remind you that your VAT return is due and then ensure that all VAT submissions are submitted accurately and on time in line with HMRC’s deadlines. The VAT refund is paid directly into your nominated account, and you will then be invoiced for the ROA VAT Solution fee at the point the claim has been submitted to HMRC.
Fee structure
The quarterly charging tariff is as follows. ROA Members receive a 20% discount:
ROA VAT Solution Fees for ROA Members - 2024
| 1 | 2 | 3 | 4 | 5 | 6 | 7+ | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ownership Status | Net | Vat 20% | Net | Vat 20% | Net | Vat 20% | Net | Vat 20% | Net | Vat 20% | Net | Vat 20% | Net | Vat 20% |
| sole/company | 105.00 | 21.00 | 142.00 | 28.40 | 158.00 | 31.60 | 173.00 | 34.60 | 194.00 | 38.80 | 194.00 | 38.80 | Price on application | |
| partnership / syndicate / club | 142.00 | 28.40 | 158.00 | 31.60 | 173.00 | 34.60 | 194.00 | 38.80 | 194.00 | 38.80 | 215.00 | 43.00 | ||
ROA VAT Solution fees for non-members - 2024
Number of horses
| 1 | 2 | 3 | 4 | 5 | 6 | 7+ | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ownership Status | Net | Vat 20% | Net | Vat 20% | Net | Vat 20% | Net | Vat 20% | Net | Vat 20% | Net | Vat 20% | Net | Vat 20% |
| sole/company | 131.00 | 26.20 | 177.00 | 35.40 | 217.00 | 43.40 | 217.00 | 43.40 | 244.00 | 48.80 | 244.00 | 48.80 | Price on Application | |
| partnership / syndicate / club | 177.00 | 35.40 | 217.00 | 43.40 | 217.00 | 43.40 | 244.00 | 48.80 | 244.00 | 48.80 | 270.00 | 54.00 | ||
Please note first VAT returns will be charged based on the number of quarters covered. E.g. 6 months will be 2 quarters. There will be a one-off registration fee of £31.50 plus VAT for all new VAT registration numbers, charged with the first VAT return.
Occasionally, there may be a VAT period where there are no invoices for VAT recovery, for example if you are between horses, or your horse is resting at home throughout the VAT period. In such instances a ‘nil return’ will be submitted and our fee will be reduced to £31.50 plus VAT for all ownership types and ROA membership statuses
Next steps
For owners with existing VAT registrations
- Complete the Agent Flyer, ensuring all fields are competed accurately and the form is signed.
- Please submit all signed forms to [email protected]
For new VAT registrations
- Complete the Agent Flyer, ensuring all fields are competed accurately and the form is signed.
- Download and complete either D1 or D2 form, depending on your ownership
- Download and complete the Sole, Partnership or Syndicate registration detail form.
- Once completed please submit all signed forms to [email protected]
All forms are in editable PDF format.
For all other queries contact us at [email protected] or speak to one of our team on 0118 3385 685
Agent Flyer
Please either download the PDF and complete the form, or complete the onlie form below:
Agent Flyer.pdf 2
VAT - Frequently Asked Questions
I want to become VAT registered under the registration scheme for racehorse owners. What is the qualifying criteria?
The ownership entity must own at least 50% of a horse, which is in training in the UK with a licensed trainer and is covered by a third-party sponsorship.
The BHA have D1 and D2 forms for VAT registration. Which should I use?
Use a D1 to register an individual owner (sole proprietor), company or Racing Club for VAT. Partnerships and Syndicates should use a D2 form.
I only own 25% of a horse. Does that mean I can’t recover VAT I have paid?
You wouldn’t be eligible to register for VAT as an individual (sole proprietor). However, you can recover the VAT you have paid by registering for VAT as a partnership with other partners, as long as the aggregate share you own is 50% or greater.
I sponsor my own horse as a self –sponsorship. Is this sufficient to qualify?
No, the sponsorship must be by a third-party. This can be in addition to a self-sponsorship.
I own several horses (all 100% in same ownership). Do I need to register for VAT for each horse?
No, the VAT registration will cover all qualifying horses for the ownership entity.
I bought the horse before I registered for VAT. Can I reclaim the purchase?
When registering for VAT you will be given an effective date of VAT registration (EDR), usually the date BHA approve your D1/D2 application. You can recover VAT on the purchase invoice of the horse up to four years prior to the EDR if the VAT entity owns the horse 100%, this is reduced to six months for a lesser ownership share. For all other VAT recovery, e.g. training, vet fees etc you can recover VAT on valid invoices dated up to six months prior to the EDR.
How often are the VAT returns done?
Racehorse owners VAT returns will fall on a quarterly basis, so are submitted every three months.
How do I send in my invoices for ROA VAT Solution to recover VAT?
Invoices can be uploaded or emailed into Xero via Hubdoc or sent by post.
What items can I recover VAT on?
A non-exhaustive guide to VAT recoverable items under the Racehorse Owners VAT Scheme can be found in the following document:
RECOVERABLE VAT FOR RACEHORSE OWNERS.pdf
I am selling a horse. What are the VAT implications?
If you are selling a horse, you must charge VAT on the sale price at the standard rate (currently 20%). If you are selling the horse through a sales house (e.g., Tattersalls/Goffs) please advise them of your VAT number prior to the sale to ensure VAT is applied to the selling price. If you are selling the horse privately, ensure a sale invoice is raised to include VAT and your VAT number is raised. ROA VAT Solution can assist with a sale invoice template if necessary.
N.B. If VAT is not applied to the sale HRMC will treat the sale as VAT inclusive so 20% of the sale price will need to be declared to HMRC, otherwise client will lose out!
Why have I received VAT on prize-money, but not on the Prize Percentage of Stakes?
Prize-money is subject to VAT at the standard rate. Percentage Prize of Stakes is outside of scope for VAT, as is made up from portion of entry fees which are also outside scope of VAT.
My return has been submitted to HMRC. When can I expect funds to be received in my account?
Typically, funds are received within 7-10 working days from the date of submission. However, HMRC advise to allow 30 days before they can be contacted for chasing of funds.
It is possible that for larger VAT returns (VAT received exceeds £10,000) HMRC will request further information before processing which can delay the receipt of payment.
I was previously VAT registered and have purchased a new horse. Can I use/resurrect my old VAT registration?
If the previous VAT Registration was deregistered with HMRC, you will have to re-register and will receive a new VAT Registration number.
Still have a query? Contact our VAT Solution team on [email protected] or on 0118 3385 685
Owner Sponsorship
Join our Owner Sponsorship scheme to register for and reclaim your racing VAT
Maximising Owner Sponsorship
More information on what you can reclaim under the scheme
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